Horrible news for our kids. Biden wants to get rid of a part of tax law called “stepped-up basis”. Not a rumor. Politifact rates it as “True”.
Here’s a real-world example of what this means.
Say you paid $50,000 for your home some years ago. When you eventually fall off the perch, your daughter inherits it. At that point, the area has gentrified, neighborhood has expanded, new stores and schools, you’ve kept it real nice, it’s worth say $300,000. She’s looking to move in with her husband and kids.
UNDER CURRENT RULES, with stepped-up basis, when she inherits your home your daughter will owe $0.00 in tax. Which makes sense, because you paid tax on every penny you paid for your home, plus property taxes every year for the privilege of ownership. Been there, taxed that.
UNDER BIDEN’S PLAN, on the other hand, your daughter would pay tax on A QUARTER MILLION DOLLARS.
Seriously. $250,000. And it gets worse.
The entire quarter million would fall as her income in one single tax year, so even if your daughter had no other income, for that one year she’d be in the second-highest tax bracket. Hang on a minute, I’ve worked as a tax accountant, let me look it up … OK, Federal Income Tax on a quarter of a megabuck is:
$47,367.50 plus 35% of the amount over $207,350 =
Sixty grand. But wait, there’s more. She’ll have to pay state taxes as well. In California that’s $19,996 … for a total of:
Eighty grand in taxes, due and payable upon your death. Of course, her inheritance doesn’t include such giant piles of cash, in part because you’ve saved and put money into buying your home in order to give something tangible to your descendants …
So unless she has a rich uncle somewhere, your daughter be forced to sell the family home to pay JOE BIDEN’S EIGHTY-TWO THOUSAND DOLLAR TAX BILL.
This is why I started off by calling this “horrible news”. Joe’s tax plan will cost far too many of our children their family homes, the homes that they grew up in.
Seriously, folks, the left is out there in economic lala land. I listened to Biden’s speech today. It was curious. About the only times the “crowd” of six hundred or so cheered and honked their horns was when he promised “free” stuff—”free” college, “free” debt cancellation, “free” medicine for all, the list goes on and on.
Of course he didn’t mention that “free” means “taxpayer paid”. And he didn’t mention that the Biden tax plan will mean a crushing tax burden for your children, a burden that will force far too many of them to have sell the very family home that you and they have planned for them to live in when you are gone.
Finally, if you think that’s bad, consider a farmer or a rancher who owns hundreds of acres. The farmer has put in thousands of hours improving the operation, plus just raw land values have doubled … their children will be paying taxes on millions of invisible dollars. As a result, Joe’s plan will virtually guarantee the loss of innumerable family farms and ranches, sold to pay Joes Tax.
Care to guess what Biden plans to do with the money that he’s taking from your kids? Yep, you guessed it, something “free”. In this case it’s “free” community college. And for that he proposes throwing our children out of their inherited homes.
Please, please don’t let this happen. A vote for Biden is a vote to impoverish your children and to destroy thousands of family-owned farms and ranches across the US.
Hold your nose if you must, but vote for Trump and the Repubican party, not Joe and the tax-and-riot party … no joke, he’s coming for your kid’s house.